Determine allowable bad debt deduction for current tax year

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Reference no: EM131223456

Determine the allowable bad debt deduction for the current tax year in the situation described below: A) A business debt becomes partially worthless during the current tax year. The debt is for $1,000. However, only $600 of the debt is worthless. b. a $1,000 business debt becomes totally worthless during the current tax year. c. Tom makes a $1,000 bona fide loan to his friend. It is determined during the current tax year that the debt is worth only $500 23) Comment on the deductibility of the following business expenses:

a. Amounts paid to a lobbyist to secure the passage of favorable legislation

b. Fines paid by a trucker for inadvertently exceeding the states maximum weight laws.

c. Advertising by a public utility company to defeat public power legislation

d. Current research and development expenses incurred for the first time, assuming that the taxpayer desires to deduct the expenses.

Reference no: EM131223456

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